Committee adopts consumer safeguards for crypto kiosks, limits some transactions and imposes hold period
Loading...
Summary
House Bill 483, authored by Rep. Wright, would require warning signage, transaction limits and a hold period on some purchases at virtual‑currency kiosks; committee adopted technical amendments and voted the bill out as amended to provide new protections targeted to fraud victims, especially older adults.
Representative Blake Wright said the bill responds to a surge in scams that use cryptocurrency kiosks (commonly called crypto or Bitcoin ATMs) to move cash rapidly out of victims' reach. "We've gotten contacted by a number of sheriffs around the state who had scams going on in their parishes where elderly folks . . . were being scammed by asking, saying that they were being called by a sheriff or the court and needed to go put money into these kiosks," Deputy Attorney General Larry Freeman told the committee.
The bill, as amended, requires kiosk operators to post fraud warnings, maintain consumer disclosures and implement blockchain analytics and anti‑fraud policies. The committee adopted a set of industry‑negotiated amendments (Amendment Set 2243) that add requirements for blockchain analytics, an anti‑fraud policy and enhanced due diligence.
Industry witnesses — including CoinFlip executives — said they supported strong protections but asked the committee to target the most restrictive provisions (a 72‑hour hold and a $3,000 daily cap) to new/first‑time users rather than all customers. CoinFlip general counsel Larry Lipsky told lawmakers the company would accept a targeted approach that protects new users and flagged that broad limits could impede law‑enforcement reporting thresholds and legitimate customers who regularly use kiosks.
Law enforcement and older‑adult advocates supported the bill. Detective Stefan Weakley (Calcasieu Parish Sheriff’s Office) told the committee that kiosk‑related complaints and losses have risen sharply. "Many victims realize they've been scammed within 12 hours, but by then the money's already moved through the blockchain, irreversible and nearly impossible to recover," he said. AARP Louisiana representatives also testified in favor.
After the committee adopted the technical and consumer‑protection amendments, the chair called for a motion and the bill was reported favorably as amended. The vote was unanimous (no objection) at committee.
Ending: The bill moves to the full House with negotiated amendments that the sponsor said aim to balance consumer protection with legitimate usage and industry compliance.
